The introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA) is a milestone in safeguarding the interests of homebuyers and bringing transparency to the real estate sector in India. One of the key provisions of the Act is the establishment of an effective grievance redressal mechanism for allottees (homebuyers) to file complaints against errant promoters.
Prior to RERA, buyers often faced lengthy legal battles. The recourse available was before the Civil courts or under consumer Protect Act. The absence of a sector-specific regulatory framework meant that buyers had to rely on general laws, which were often time-consuming, costly etc.
RERA empowers allottees with the legal right to seek swift remedies by filing complaints before the Real Estate Regulatory Authority or the Adjudicating Officer, ensuring that promoters are held accountable for violations of the Act.
This article delves into the procedure, scope, and implications of filing complaints under RERA, providing a practical guide for aggrieved homebuyers.
Generally, under the real estate framework, the allottee (homebuyer) expects their grievances to be addressed by the promoters (builders or developers). If the grievances are not resolved or the terms of the agreement are not honored, the allottee may seek legal recourse. Traditionally, this legal remedy involved approaching the courts. However, after the implementation of RERA, allottees increasingly approach the Real Estate Regulatory Authority for dispute resolution for the reasons outlined herein
Essential ingredients for filing the Complaints –
(1) Any aggrieved person is vested with the locus to file Complaints before RERA.
(2) Person besides being defined under Section 2(z)(g) of the Act also includes the association of allottees or any voluntary consumer association registered under any law for the time being in force.
(3) The complaint may arise out of contravention of any of the provisions of the Act or the rules and regulations made thereunder.
(4) The complaint may be filed against any promoter, allottee or real estate agent.
Reasons or Recommendation to file Complaints before RERA –
1. RERA is a regulatory Act specific to the real estate industry. It maintains detailed records of projects, promoters, and complaints filed by allottees for each project.
2. Allottees’ complaints are generally filed on a project-wise basis, allowing RERA to readily access the total number of complaints and assess the seriousness of issues related to a particular project.
3. RERA has the authority to direct and instruct promoters to comply with the law and address the grievances of allottees in the interest of natural justice
4. Failing to address the multiple complaints (if any), the RERA can choose not to grant further approvals for the project (eg., Extension of time, modification etc) or any fresh registration for new projects
5. Section 79 for the RERA Act Bar of Jurisdiction of Civil courts – No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority, the Adjudicating Officer or the Appellate Tribunal is empowered by or under this Act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.
6. Comparison Chart of RERA, Civil Courts and Consumer Courts –
| Comparison | RERA | Civil Courts | Consumer Protect Act |
| Resolution Time | Within 60 days | Often several years | Within 3-5 months (ideally), but often takes longer |
| Specialization | Real estate projects only | General jurisdiction | Covers all consumer disputes |
| Procedure | Simple, Quais Judicial | Follow the procedure of the civil court | Online/offline filing via E-Daakhil portal or in-person |
| Cost | Low | Relatively high | Relatively high |
| Relief | Refunds, compensation, penalties, possession | Limited remedies; slow enforcement | Refunds, compensation, penalties, possession etc |
| Promoter Accountability | Mandatory disclosures, compliance | No proactive regulation | General Regulations |
| Appeals | REAT → High Court | Multiple appellate layers | Appeal to higher Consumer Commission |
| Penal Powers | Can impose fines and imprisonment (for non-compliance) | No | Can award compensation and initiate proceedings for contempt |
| Legal Representation | Not mandatory; simpler process | By a Legal Counsel | Advisable for legal counsel considering the procedure |
Any aggrieved person may file a complaint with RERA or the adjudicating officer, as the case may be, with respect to any registered real estate project, for any violation or contravention of the provisions of this Act or the rules and regulations made there under. The Authority shall establish an adjudicating mechanism for speedy redressal of such complaints.
Any person aggrieved by any direction or decision or order made by RERA or by an adjudicating officer may file an appeal before the Appellate Tribunal within 60 days of receipt of the order.
Any person aggrieved by any decision or order of the Appellate Tribunal, may file an appeal to the High Court within 60 days of deciding the appeal.
It is important to note that the Act uses the term “any aggrieved person”, not just the allottee. This means that even the promoter can file a complaint against the allottee for non-adherence to the terms of the agreement.
| Sl No | Filing of complaints Before | Nature of Grievance/Remedy’s | Time Limit to dispose the complaint / Appeal | Notes |
| 1 | Any aggrieved person may file a complaint with RERA (i.e., RERA Authority) | 1. For any violation or contravention of the provisions of this Act
2. Refund for delay in possession, interest 3. For breach of terms of the agreement |
Within 60 days from the date of the complaint | Powers are vested with the RERA to hear the complaints, pass the necessary orders, issue the directors, levy the penalty’s etc |
| 2 | Any aggrieved person may file a complaint with Adjudicating Officer (AO) | To decide the compensation payable in respect of complaints under sections 12, 14, 18 and 19
The Act empowers the AO for adjudicating the compensation. |
Within 60 days from the date of the complaint | AO shall consider the factors into account while adjudication as per section 72 of the Act |
| 3 | 1st Appeal – before REAT – Real Estate Appellate Tribunal | Any person aggrieved by any direction or decision or order made by RERA or by an adjudicating officer may file an appeal before the Appellate Tribunal within 60 days of receipt of the order. All such appeals to be disposed of within 60 days of its receipt | Within 60 days from the date of receipt of appeal | Every order passed by the REAT under this Act shall be deemed to be a decree of a civil court and shall be executable in the same manner as a decree of the civil court.
For this purpose, the REAT shall have all powers of a Civil Court. The RERA-AT is also competent to transmit any of its order to a Civil Court having local jurisdiction for execution in the same manner as if it was a decree of that Civil Court. REAT is the last fact finding Authority under RERA.
|
| 4 | 2nd Appeal – before the High Court | Any person aggrieved by any decision or order of the Appellate Tribunal. | No time limit |
For the following sections, the Allottees file complaint before AO for seeking the compensation –
Section 12: Loss or damage due to promoter’s false statement in advertisement or prospectus.
Section 14: Promoter’s failure to develop and complete the project as per sanctioned plans.
Section 18: Promoter’s failure to complete or deliver the apartment, building, etc.
Section 19: Allottee’s failure to discharge his duties
The adjudicating officer has the following powers (Section 71)
a. Power to hold an inquiry.
b. Power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case.
c. Power to make the above person give evidence and/or to produce any document which may be useful to the inquiry.
d. Upon completion of such inquiry if satisfied that the respondent has contravened any of section 12, 14, 18 or 19, award such compensation or interest, as he thinks fit as per provisions of the aforesaid sections.
Factors to be taken into account by the adjudicating officer (Section 72)
While adjudging the quantum of compensation or interest, as the case may be, under section 71, the adjudicating officer shall have due regard to the following factors, namely –
(a) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default;
(b) the amount of loss caused as a result of the default;
(c) the repetitive nature of the default;
(d) such other factors which the adjudicating officer considers necessary to the case in furtherance of justice.
HOW & WHEN TO FILE COMPLAINT WITH THE ADJUDICATING OFFICER and AUTHORITY – in KARANTAKA –
1. Complaint should be filed in the format of Form O
2. Complaint before the Authority is filed as per Form N
3. Shall be accompanied by the Fees – Rs.1,000/-
4. Click here and submit the complaint online https://rera.karnataka.gov.in/complaintHome
5. Fill the details properly and submit the application online.
6. The facts of the Complaint must be drafted in a simple, lucid and clear manner only comprising the relevant material facts. Upload the relevant documents like relevant documents i.e., agreement of sale, allotment letter, payment receipts, rental agreement, home loan letters, etc. to support the complaint
7. Relief sought should be specific and clear.
Important Sections under the Act with respect to complaints, appeal etc
| Sections
31 – Filing of Complaint with Authority. 35 – Powers of Authority to call for information, conduct investigations 36 –Power to issue interim orders. 37 – Powers of Authority to issue directions. 38 – Powers of Authority. 56 – Right to legal representation 71 – Power to adjudicate |
Rules
Rule 29 — Manner of filing complaint with the Authority. Rule 30 — Manner of filing a complaint with the Adjudicating Officer and the manner of holding an inquiry by the Adjudicating Officer. |
| 72 – Factors to be taken into account by the adjudicating officer.
79 – Bar of jurisdiction. |
In my experience the Majority of the Complaints filed before RERA are for the following reasons-
1. Delay in delivery of possession and for Delay period compensation
2. Deficiency in services – quality or quantity different than the promises made in the advertisement or agreement for sale
3. Obtaining the necessary approvals like Occupancy Certificates, completion certificates, various Government NOC’s mandated
4. Modification of plan without the consent of the allottees
5. Handover of the project related documents, Corpus Amount to the Association of Allottees.
FAQ’s
1. Can a promoter or a real estate agent also file a complaint against a buyer?
a. Ans: Yes. Any aggrieved person having an interest in the registered real estate project can file a complaint provided that the Complaint is against a Promoter, allottee or a real estate agent and is arising out of the violation / non-compliance of the provisions of the Act
2. Can the association of allottees file the complaint against the promoter?
a. Ans: Yes, such association shall be registered and all the members of the association shall be allottees in the projects.
3. On what grounds can a home buyer file a Complaint?
a. Ans: An aggrieved person may file a Complaint for any violation, non-compliance or contravention of the provisions of the RERA Act or the Rules and Regulations made thereunder.
4. Who would decide the Complaints Application?
a. Ans: Based on the relief sought in the Complaint and the provision of law selected at the time of filing the online Complaint, the Complaint will be listed before the Adjudicating Officer or before the Authority.
5. If a Promoter doesn’t register the project with RERA, how can one file a complaint against the promoter and his project?
a. Ans: A Complaint regarding non-registration of a project with RERA can also be filed in Form N with a relief in the nature of a direction to the Promoter to register the project as an ongoing project as on the date of enforcement of the Act and the Rules and Regulations thereunder.
6. Is there a time limit for filing a complaint under RERA
a. Recommended to file within the reasonable time of cause of action. In case of the project completed and taken the possession etc., it is recommended to file the complaints on observation of deficiencies
7. Can the allottee (home buyer) themselves represent the complaint?
a. Ans: Yes, however it is recommended to engage the professionals to represent. Section 56 of the Act is empowered CA, CWA, CS and Advocates to represent before RERA and Appellate
8. How many Hearings does it usually take for RERA to hear, pass an order on a complaint?
a. Ans. matters get disposed of in 4-5 hearings, however the same may be more considering the facts and co-operation from the parties to the complaints
9. Is there any dress code and code of conduct to be followed in a hearing?
a. Ans. Yes, the professionals and the parties attending the proceedings before the Authority or the Adjudicating Officer are mandated to present themselves in formals.
10. What is the consequence of Non-attendance of hearings?
a. Ans. If the Complainant after filing of a Complaint remains absent from the proceedings in a Complaint, the Authority after offering 4-5 opportunities to the Complainant to appear and present its case, dismisses the Complaint for non-prosecution. If any or all of the Respondents remains absent from the Complaint proceedings even after having received multiple notices by e-mail, RPAD, hand summons and paper publication, the Authority places the ex-parte and proceeds with the hearings in such Complaint.
11. Can a complaint be filed by a land owner against the Builder/Developers in case of a Joint Development Agreement?
a. Ans: No, the RERA doesn’t have jurisdiction to hear the matters between the landowners and developers. These disputes arise out of their individual contracts.
12. Can a real estate agent file a complaint against builders for nonpayment of his commission or brokerage?
a. Ans: No, the RERA doesn’t have jurisdiction to hear the matters between the builders and agents. These disputes arise out of their individual contracts.
Conclusion –
Over the past eight years, the process and procedure for filing and resolving complaints under the RERA Act have matured and become well streamlined. The Adjudicating Officers (AO), Regulatory Authorities, and Appellate Tribunals (REAT) are now fully equipped to hear complaints and issue appropriate orders in accordance with the provisions of the Act.
Chartered Accountants are also permitted to represent clients before RERA authorities, opening up a valuable new avenue for professional practice. This presents a significant opportunity for CAs to expand their service offerings in the real estate regulatory space.
This article aims to provide an overview of the complaint mechanism under the RERA Act. Readers are encouraged to refer to additional resources and legal materials for a deeper understanding and updated insights.
The author Vinay Thyagaraj is founder partner at M/s.Venu & Vinay, Chartered Accountant and can reach him at vinay@vnv.ca
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